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126
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated fi nancial statements
Disposals
ANF continued its asset disposal programme and during the fi scal
year sold two property complexes in Lyons and three properties plus
a number of apartments in Marseilles, for a total of €29.1 million.
SGIL, an ANF subsidiary, disposed of all its real estate assets in
Lyons in December 2009. The proceeds of the sale amounted to
€16.7 million, with ANF’s share representing €10.6 million.
As part of the aforementioned swap, ANF transferred plots to the
Ambroise Paré association.
Continuing the development of the Fauchier project, ANF agreed
an off-plan sale with the City of Marseilles for a portion of the offi ce
buildings. SCCV 1-3 rue d’Hozier took over the building plot and
the various costs incurred by ANF in respect of the residential
component of this project.
The proceeds of these development project-related disposals
amounted to €25.7 million.
The disposals generated a gain of €2.2 million.
Operations
Rental income amounted to €65.1 million, up €6 million, representing
growth of close to 10% net. Operating income (before changes in
fair value of property) amounted to €52.7 million, up €9.3 million
(+21.5%) on 2008.
ANF • 2009 ANNUAL REPORT
A more conservative policy regarding the funding of provisions for
trade receivables, combined with an increase in arrears on three
retail tenants, led to an appreciable rise in the provisions funded
(+€0.5 million). Two of these retail premises were vacated and re-let,
resulting in a €0.2 million increase in annual rental income.
After deducting the net fi nancial expense and excluding the gain
on asset disposals, current cash fl ow per share was up 6.8%, from
€1.32 to €1.41.
Property measurement
The downturn in the property market combined with the increase
in yields expected by investors, resulted in a sharp fall in the value
of the real estate assets, which the substantial increase in rental
income couldn’t offset. The changes in fair value of property
recognised in the period was minus €87 million, including a gain on
disposal of €2.2 million.
Tax
Events after the balance sheet date
No material events have occurred since December 31, 2009.
Change in method
The accounting methods used for the period are identical to those
used for the prior period.
The new standards and interpretations applicable from January 1,
2009 did not have a material impact on ANF’s interim consolidated
Consolidation principles and methods
Accounting basis
In line with the provisions of European Regulation (EC) No 1606/2002
of July 19, 2002 on the application of international accounting
standards, the ANF Group’s consolidated fi nancial statements for
the fi scal year ended December 31, 2009 were prepared in line with
the IFRS accounting basis as adopted by the European Union.
The consolidated fi nancial statements cover the period from
January 1, 2009 to December 31, 2009. They were approved by
the Executive Board on March 8, 2010.
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Contents
By disposing of its real estate assets, SGIL waived its special
SII (Société d’Investissement Immobilier) status, giving rise to a
€3 million income tax expense, ANF’s share of which amounted to
€1.9 million.
fi nancial statements and are described in the note entitled
“Consolidation principles and methods”.
The ANF Group applies the international accounting standards
comprising IFRS, IAS and their interpretations as adopted by
the European Union and which are applicable for the fi scal year
beginning January 1, 2009.
Offi cial standards and interpretations that may be applicable
subsequent to the balance sheet date have not been applied early.
The interim fi nancial statements have been prepared using the
historical cost convention, with the exception of investment
property and certain fi nancial instruments that are recognised
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